Atomic Maize Millers

Business Plan

Wote Machakos Tawa Kikima, Kitundu

By: Keli Nicholas

Telephone number ±254723668099

Email kelinikolas1@gmail.com
 Why Start a Maize Flour Mill Business?

As an aspiring entrepreneur who is looking towards starting a business and becoming your

own boss, one of the businesses that you can successfully start if you have the financial

requirement and of course business expose is to open a maize flour production mill.

Although this type of business is not a business that you can start making profits from

instantly, but a you are sure going to make good profits in the long run if you are determined

and proactive in running the business. The reason is not far – fetched; you will require huge

capital to set – up a standard maize flour production mill. This type of business can somewhat

be capital intensive.

Beyond every reasonable doubt, maize flour is consumed in all parts of the world either as

flour or the flour is used in the production of bread and other baked foods. This goes to show

that there is indeed a large market both locally and internationally for maize flour production

companies. Below is a sample maize flour production mill business plan template that can

help you to successfully write your own.

 Executive Summary

Atomic Maize Millers Company is a licensed and standard maize flour mill production

company that will be located in an industrial area in Wote Makueni. We have been able to

secure a long term lease for a facility in a strategic location close to a big maize farm with an

option of a long term renewal on an agreed terms and conditions that is favorable to us.

The facility has government approval for the kind of business we want to run and it is easily

accessible and we are deliberate about that to facilitate easy movement of raw materials

(maize grains and packaging materials) and finished products (well packaged maize flour).

We are in the maize flour mill production business to engage in processing, packaging and

retailing maize flour. We are also in business to make profits at the same to give our

customers value for their money; we want to give people and businesses who patronize our

well packaged maize flour the opportunity to be part of the success story of Atomic Maize

Millers.

We are aware that there are several big scale and small scale maize flour mill production

companies scattered all around the area whose products can be found everywhere, which is

why we spent time and resources to conduct our feasibility studies and market survey so as to

enable us locate the business in an area that will support the growth of the business and also

for us to be able offer much more than our competitors will be offering.

Much more than producing healthy, well processed and well packaged maize flour, our

customer care is going to be second to none. We know that our customers are the reason why

we are in business which is why we will go the extra mile to get them satisfied when they

visit purchase our maize flour warehouse and also to become our loyal customers and

ambassadors. Atomic Maize Millers Company will ensure that all customers (wholesale

distributors) are given first class treatment whenever they visit our flour mill or warehouse.
 Objectives

 To establish a presence as a successful Maize Mill and gain a market shares in

industry.

 To make Atomic Maize Millers a destination spot for customers.

 To expand into a number of mills by year three, and sell the franchise to neighboring

metropolitan cities.

 To become profitable within the first two years.

Mission

Our mission is to establish a standard and world class Maize flour mill in our own capacity

will favorably compete with leaders in the industry. We want to build a maize flour mill

production business that will be listed amongst the top 10 maize flour mill brands in the Wote

Makueni.

Keys to Success

 Create a unique, innovative, mill that will differentiate us from the rest of the

competition.

 Control costs at all times, in all areas and implement a conservative approach to

growth policy. Although, we provide more than enough fund to open more than one

outlet, we want to be on the safe side of the business.

 Sell the products that are of the highest quality, as well as keeping the customers

happy with all of our product categories.

 Provide 100% satisfaction to our customers and maintaining the level of excellent

services among other competitors.

  Get access to high-traffic places near the target market.

 Promote good values of company culture and business philosophy.

Company Summary

Atomic Maize Millers is recently formed by Keli nikolas. The facility has government

approval for the kind of business we want to run and it is easily accessible and we are

deliberate about that to facilitate easy movement of raw materials (maize grains and

packaging materials) and finished products (well packaged maize flour). We are in the maize

flour mill production business to engage in processing, packaging and retailing maize flour.

We are also in business to make profits at the same to give our customers value for their

money; we want to give people and businesses who patronize our well packaged maize flour

the opportunity to be part of the success story of Atomic Maize Millers.

Company Ownership

Atomic Maize Millers is recently formed and operated by Keli nikolas

Start-up Summary

Starting a standard maize flour mill production company is indeed a capital intensive

business. This is so because the amount required setting up a flour mill is not a piecemeal.

The bulk of the start-up capital will be spent on leasing or acquiring a facility and also in

purchasing grain milling machines, and packaging equipment.

Aside from that, you are not expected to spend much except for purchase and servicing of

distribution trucks, paying of your employees and utility bills. This is the key areas where we

will spend our startup capital;

 The Total Fee for Registering the Business – $750.

 Legal expenses for obtaining licenses and permits as well as the accounting services

(software, P.O.S machines and other software) – $1,300.

 Marketing promotion expenses for the grand opening of Maize Flour Production

Company in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04

per copy) for the total amount of – $3,580.

 Cost for hiring Business Consultant – $2,500.

 Insurance (general liability, workers’ compensation and property casualty) coverage

at a total premium – $2,400.

 Cost for payment of rent for 12 month at $1.76 per square feet in the total amount

of $105,600.

 Cost for construction of a standard maize flour mill – $100,000.

 Other start-up expenses including stationery ($500) and phone and utility deposits

($2,500).

 Operational cost for the first 3 months (salaries of employees, payments of bills et al)

– $100,000
  The cost for Start-up inventory (raw materials and packaging materials et al) –

$80,000

 The cost for counter area equipment (counter top, sink, ice machine, etc.) – $9,500

 Cost for grain milling machines and packaging equipment – $100,000

 Cost for store equipment (cash register, security, ventilation, signage) – $13,750

 Cost of purchase of 3 distribution vans – $30,000

 The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone,

Fax Machines, tables and chairs et al) – $4,000.

 The cost of Launching a Website – $600

 The cost for our opening party – $10,000

 Miscellaneous – $10,000

We would need an estimate of $500,000 to successfully set up our maize flour mill in

Springfield – Illinois. Please note that this amount includes the salaries of all the staff for the

first 3 month of operation

Products

Atomic Maize millers are going to operate a standard and licensed maize flour mill

production company whose products will not only be sold in Wote Machakos. We are in this

line of business to make profits and also to give our customers value for their money.

We are going to do all that is permitted by the law of the States to achieve our business aim

and ambition. Our product offering will be;

 Processing

 Packaging and retailing maize flour in commercial quantities

Management Summary

Atomic Maize millers are establishing with aim of competing favorably with other leading

maize flour brands in the city. This is why we will ensure that we put the right structure in

place that will support kind of growth that we have in mind while setting up the business.

We will ensure that we only hire people that are qualified, honest, hardworking, customer

centric and are ready to work to help us build a prosperous business that will benefit all the

stake holders (the owners, workforce, and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our senior

management staff and it will be based on their performance for a period of five years or more

depending how fast we meet our set target. In view of that, we have decided to hire qualified

and competent hands to occupy the following positions;

 Chief Executive Officer (Owner)

 Plant Manager

 Human Resources and Admin Manager

  Merchandize Manager

 Sales and Marketing Manager

 Machine Operators

 Accountants / Cashiers

 Distribution Truck Drivers

Market Analysis Summary

Maize flour production companies in basically engaging in milling maize grains into flour

and then package and sell them to wholesale distributors, grocery wholesalers or other food-

related business. They purchase maize grain inputs from wholesalers or directly from

growers.

The main fact that maize flour mills provide goods that are considered diet staples, the

industry will remain relevant in the years to come. The revenue and profit generated from this

industry will depend on the price and production of maize. As companies vertically integrate

and merge operations to take advantage of economies of scale, revenue will rise.

According to a report, the Flour Milling industry of which Maize Flour Mill Production line

of business is a part of is characterized by a low level of market share concentration. The

report stated that in 2019, the top three players are expected to account for less than 31.0

percent of industry revenue.

The Flour Production Mill industry of which maize flour mill production line of business is

subset of is a thriving sector of the economy of the country and they generates a whooping

sum of well over billion annually from more than 403 registered and licensed maize flour

mill production companies scattered all around the country.

The industry is responsible for the employment of well over 24,938 people. Experts project

the maize flour mill production industry to grow at a -1.2 percent annual rate. With this kind

of business, if you want to start on a small scale, you can choose to start servicing your local

community. All you would need is contacts, packaging, networking and good marketing and

customer service skills. However, if you intend starting it on a large scale, then you should

consider spreading beyond your local community to state level and even national level.

Market Trends

Report that stated that the Flour Milling industry of which Maize Flour Mill Production line

of business is a part of is characterized by a low level of market share concentration. The

report stated that in 2020, the top three players are expected to account for less than 31.0

percent of industry revenue.

While the industry exhibits low concentration, the industry is expected to approach moderate

concentration over the next five years in line with the entrance of larger flour milling

companies.

If you are conversant with the trends in amongst maize flour mill production companies, you

will realize that in the bid to expanding their brand and generate enough income, they do not

just settle for just the production of maize flour, they also engage in related activities such as

producing flour from corn, producing flour mixes from a variety of grain crops, milling rough

rice, producing malt from a variety of cereal grains, and producing meal and animal feed

They are able to achieve this because the processes and machine involved are same as that

required for milling maize grains into fine maize flour. With this, they are able to maximize

their capacity and make good profits from the business.

Our Target Market

When it comes to selling maize flour, there is indeed a wide range of available customers. In

essence, our target market can’t be restricted to just a group of people, but all those who

resides in our target market locations. In view of that, we have conducted our market research

and we have ideas of what our target market would be expecting from us.

We are in business to engage in wholesale distribution and to retail well – packaged maize

flour in different sizes to the following groups of people;

 Hotels

 Restaurants and Canteens

 Event Planners and Caterers

 Households

 Students

 Everybody in our target market location

Our competitive advantage

A close study of the maize flour mill production industry reveals that the market has become

much more intensely competitive over the last decade. As a matter of fact, you have to be

highly creative, customer centric and proactive if you must survive in this industry.

We are aware of the stiffer competition and we are well prepared to compete favorably with

other maize flour mill production companies in area and throughout the United States and

Canada.

We are launching a standard maize flour brand that will indeed become the preferred choice

of residence of area and every city where our well – packaged maize flour will be distributed

and retailed.
Part of what is going to count as competitive advantage for us is the vast experience of our

management team, we have people on board who are highly experienced and understands

how to grow business from the scratch to becoming a national phenomenon.

So also proximity to one of the largest maize grain farms in area, our large national

distribution network and of course our excellent customer service culture will definitely count

as a strong strength for the business.

Lastly, our employees will be well taken care of, and their welfare package will be among the

best within our category (startups maize flour mill production companies) in the industry,

meaning that they will be more than willing to build the business with us and help deliver our

set goals and achieve all our aims and objectives. We will also give good working conditions

and commissions to freelance sales agents that we will recruit from time to time.

Strategies Implementation Summary

Marketing Strategy

Atomic Maize millers is established with the aim of maximizing profits in the maize flour

mill production industry in country and we are going to go all the way to ensure that we do

all it takes to sell our well processed and well – bagged maize flour to a wide range of

customers.

We will generate income by processing, packaging, distributing and retailing maize flour.

Sales Forecast

One thing is certain when it comes to maize flour production business, if your maize flour are

well – packaged and branded and if your production mill is centrally positioned and easily
accessible, you will always attract customers cum sales and that will sure translate to increase

in revenue generation for the business.

We are well positioned to take on the available market in cpuntry and every city where our

well processed and well – packaged maize flour will be distributed and retailed and we are

quite optimistic that we will meet our set target of generating enough income / profits from

the first six month of operations and grow the business and our clientele base.

We have been able to critically examine the maize flour mill production industry and we have

analyzed our chances in the industry and we have been able to come up with the following

sales forecast. The sales projections are based on information gathered on the field and some

assumptions that are peculiar to startups in area.

Below are the sales projection for our company, it is based on the location of our business

and other factors as it relates to small scale and medium scale maize flour production

company start – ups in the country;

 First Fiscal Year-: $240,000

 Second Fiscal Year-: $450,000

 Third Fiscal Year-: $950,000

Sales Strategy

Before choosing a location for flour mill we conduct a thorough market survey and feasibility

studies in order for us to be able to be able to penetrate the available market in our target

market locations.

We have detailed information and data that we were able to utilize to structure our business to

attract the numbers of customers we want to attract per time and also for our products to

favorable compete with other leading maize flour brands in the country.
We hired experts who have good understanding of the maize flour production industry to help

us develop marketing strategies that will help us achieve our business goal of winning a

larger percentage of the available market in city and other cities in the country.

In other to continue to be in business and grow, we must continue to sell our well – bagged

maize flour to the available market which is why we will go all out to empower or sales and

marketing team to deliver our corporate sales goals.

In summary, we will adopt the following sales and marketing approach to sell our maize

flour;

 Introduce our maize flour brand by sending introductory letters to residence, maize

flour merchants and other stakeholders and other cities

 Open our maize flour production company with a party so as to capture the attention

of residence who are our first targets

 Engage in road show in targeted communities from time to time to sell our maize

flour

 Advertise our maize flour in community based newspapers, local TV and radio

stations

 List our business and products on yellow pages ads (local directories)

 Leverage on the internet to promote our maize flour brands

 Engage in direct marketing and sales

 Encourage the use of Word of mouth marketing (referrals)

Publicity and Advertising Strategy

In as much as our maize flour mill is a standard one with well processed and well packaged

maize flour that can favorably compete with other leading brands, we will still go ahead to
intensify publicity for all our products and brand. We are going to explore all available means

to promote Atomic Maize Millers.

Atomic Maize Miller has a long term plan of distributing our maize flour in various locations

all around the country which is why we will deliberately build our brand to be well accepted

before venturing out.

As a matter of fact, our publicity and advertising strategy is not solely for selling our products

but to also effectively communicate our brand. Here are the platforms we intend leveraging

on to promote and advertise our Company;

 Place adverts on both print (community based newspapers and magazines) and

electronic media platforms

 Sponsor relevant community programs

 Leverage on the internet and social media platforms like; Instagram, Facebook ,

twitter, et al to promote our maize flour brand

 Install our Bill Boards on strategic locations all around major cities

 Engage in road show from time to time in targeted communities

 Distribute our fliers and handbills in target areas

 Position our Flexi Banners at strategic positions in the location where we intend

getting customers to start patronizing our products.

 Ensure that our maize flour bags are well branded and that all our staff members wear

our customized clothes, and all our official cars and distribution vans are customized

and well branded.

Our Pricing Strategy

When it comes to pricing for products such as maize flour, there are two sides to the coin. We

are aware of the pricing trend in the maize flour mill production industry which is why we

have decided to produce various bags – sizes of maize flour.

In view of that, our prices will conform to what is obtainable in the industry but will ensure

that within the first 6 to 12 months our products are sold a little bit below the average prices

of various maize flour brands in the country. We have put in place business strategies that

will help us run on low profits for a period of 6 months; it is a way of encouraging people to

buy into our maize flour brands.

Payment Options

The payment policy adopted by us is all inclusive because we are quite aware that different

customers prefer different payment options as it suits them but at the same time, we will

ensure that we abide by the financial rules and regulation of the country.

Here are the payment options that we will make available to our clients;

 Payment via bank transfer

 Payment with cash

 Payment via Point of Sale Machine (POS)

 Payment via online bank transfer

 Payment via check

 Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make

payment for farm produces purchase without any stress on their part. Our bank account
numbers will be made available on our website and promotional materials to clients who may

want to deposit cash or make online transfer for the purchase of our products.

Financial Plan

The company is now privately held by Keli nikolas. The financial details are stated below:

Start-up Funding

Currently, the company is owned by the original 1 founder, who will contribute whole

amount. This will more than cover start-up requirements, and provide the business with a

cash cushion to use for expansion over the first three years.

Break-even Analysis

Our break-even analysis shows that we need unit sales per month to break even. We do not

expect to begin turning a profit until year three.

Projected Profit and Loss

As the Profit and Loss shows, Atomic Maize Millers will run at a less profit for the first two

years, using up some of the cash reserves initially invested by the founder. As sales increase,

we will expand into new locations to aggressively spread brand recognition. This increase in

visibility will allow us to take up less expensive locations, while maintaining our flagship

operation, the first store, in a prime spot.

Projected Cash Flow

The following chart shows the Projected Cash Flow for Atomic Maize Millers.
 SWOT Analysis

We are well informed that there are several maize flour mill production companies both large

and small in the country which is why we are following the due process of establishing a

business so as to compete favorable with them.

We know that if a proper SWOT analysis is conducted for our business, we will be able to

position our business to maximize our strength, leverage on the opportunities that will be

available to us, mitigate our risks and be welled equipped to confront our threats.

Strength:

Part of what is going to count as positives for our company is the vast experience of our

management team, we have people on board who are highly experienced and understands

how to grow business from the scratch to becoming a national phenomenon.

So also, proximity to one of the largest maize grain farms, our large national distribution

network and of course our excellent customer service culture will definitely count as a strong

strength for the business.

Weakness:

A major weakness that may count against us is the fact that we are a new maize flour mill

production company and we don’t have the financial capacity to engage in the kind of

publicity that we intend giving the business.

Opportunities:

The fact that maize flour is stable food in all the countries of the world means that the

opportunity available to us is enormous. As a result of that, we were able to conduct a

thorough market survey and feasibility studies so as to enable us properly position our

business to take advantage of the existing market for maize flour and also to create our own
new market. We know that it is going to requires hard work, and we are well prepared to

achieve it.

Threat:

We are quite aware that just like any other business, one of the major threats that we are

likely going to face is economic downturn and unfavorable government policies. It is a fact

that economic downturn affects purchasing power. Another threat that may likely confront us

is the arrival of a new maize flour mill production company in same location where ours is

located. Changing diet preference may also pose a threat to maize flour mill production

companies.